China widens trade highway in South America with new mega port project
- In September, a delegation of Brazilian farmers and officials visited the Peruvian town of Chancay, where a new $3.5 billion Chinese mega port is under construction.
Key Highlights
- This port, majority-owned by China's Cosco Shipping, represents Beijing's ambitious push to enhance trade ties with South America
- Surpassing the U.S. as the region's largest trade partner over the past decade.
Chancay Mega Port Overview
- The $3.5 billion deep water port, controlled by China, is set to begin operations later this year.
- It is located 80 kilometres north of Lima and is the first Chinese-controlled port in South America.
Strategic Importance
- Part of China's 'Belt and Road' initiative, the Chancay port aims to provide China with a direct gateway to South America's resource-rich region.
- China's trade dominance in South America has helped it gain political, financial, and technological leverage in the region.
- The Chinese President may inaugurate the port during the Asia-Pacific Economic Cooperation (APEC) summit in Peru.
- Plans for resolving logistical, sanitary, and bureaucratic hurdles at the border to facilitate Brazilian trucks' access to the port.
US and China Influence in Latin America
- China has overtaken the U.S. as the dominant trade partner in South America over the last decade.
Prelims Takeaway
- Map Based questions
- Asia-Pacific Economic Cooperation